July 14, 2016
A bill recently introduced in the U.S. House to establish tax incentives for investing in methane digesters looks like a good one for farmers and environmentalists — if environmentalists are really interested in protecting air and water, and not just shutting down confined animal feeding operations.
The Agriculture Environmental Stewardship Act of 2016 would make biogas and qualified manure resource recovery properties eligible for the federal energy credit (30% Investment Tax Credit) and would permit new clean renewable energy bonds to finance qualified biogas properties.
BIOGAS BILL: Methane gas inflates the cover over a methane digester on a farm. A bill would create tax incentives to encourage investments in such biogas systems.
Representatives Tom Reed, R-N.Y., and Ron Kind, D-Wis., introduced the bill with co-sponsors Reps. Bob Gibbs, R-Ohio; John Moolenaar, R-Mich.; Dan Newhouse, R-Wash.; Reid Ribble, R-Wis.; Elise Stefanik, R-N.Y.; Mike Simpson, R-Idaho; David Valadao, R-Calif.; Joe Courtney, D-Conn.; Suzan DelBene, D-Wash.; Mark Pocan, D-Wis.; Tim Walz, D-Minn., and Peter Welch,D-Vt.
The bill claims that:
1. Incentives and encouragement for the conservation and appropriate handling of nutrients contained in organic matter are necessary.
2. Biogas systems will save federal, state and local taxpayers money by converting manure into fuel, fertilizer, thermal heat, feedstock for hydrogen fuel cells and renewable chemicals.
3. Manure resource recovery systems will save federal, state and local taxpayers money by recovering the nutrients contained in organic matter from their source, rather than recovering the nutrients after they have entered landfills or waterways.
The National Milk Producers Federation has already endorsed the bill.
“This measure recognizes the value that biogas systems can have as dairy producers continue improving the sustainability of their farms, large and small, across the country. Importantly, the creation of this new investment tax credit also addresses the value of nutrient recovery technologies, which can transform manure into fertilizer for crops and bedding for cows. This bill will help dairy farmers to utilize these new, often expensive technologies on their dairies.”
“The primary reason that wide-scale implementation of manure-control technologies has not occurred already is that sufficient funding sources to offset technology adoption cost have not been available,” says Craig Scott, director of communications for Bion, a company that has patented technology for treating and processing manure.
“The federal investment tax credit has been used historically as a tool to reduce risk and stimulate investment in certain evolving sectors, such as the renewable energy sectors, and can be used to help bridge that gap,” he says.
Farmers know that the manure their animals produce isn’t a waste. It’s good to see that some members of Congress seem to agree. More livestock groups ought to endorse the bill, and Congress should pass it.
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